1. Janice makes a loan to Bill.  She secures the loan with a lien on Bill’s primary residence in the form of a mortgage. Janice and Bill sign a mortgage agreement, a note, and a loan agreement. Janice records the mortgage in the county clerk’s office. Only when Janice is recording the mortgage does she realize that there is already another mortgage that had been previously recorded on the property.   ÂÂ
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a. If Bill runs in to financial trouble and can no longer make payments on the loan to Janice, what are her options? How are these options complicated by the previously recorded mortgage?
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b. If Bill tries to sell his primary residence, what must happen to both mortgages in order to facilitate the sale? What result if the proceeds from the sale do not cover the outstanding amounts due under each mortgage?  ÂÂ
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c. Name the “collateral†taken by Janice in the above facts. ÂÂ
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d. Name the “Creditor,†or “Lender†in the facts above.
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e. Name the “Debtor†in the facts above.
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f. Who would be considered the “secured party†in the facts above?
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ESSAY 2
2. Todd hires Janine to work at his tech company. Todd makes promises to Janine about the potential success of the company, the value of the stock she will receive as part of her compensation, and her success as a future employee. Janine also signs an employment contract with the company.  The company eventually falls apart and files for bankruptcy.
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a. Assume that Janine wants to sue Todd and the company for the civil tort claim of fraud because she felt injured in some way after she signed on with the company only to have them subsequently declare bankruptcy. What would she need to prove? What facts (either listed above, or other potential facts that you can imagine) would help her case? What are the potential pitfalls/challenges to her claim?
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b. Assume the company did not go bankrupt and that Janine’s employment agreement contained a covenant not to compete clause. How should this clause be constructed in order to be considered by a court to be lawful, if challenged?ÂÂ
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QUESTION CONTINUED ON NEXT PAGE
c. Draft a covenant not to compete clause that would comport with your answer in subpart b above. [I know there is a whole page here, but you will likely only need a couple of sentences, so don’t let that throw you off, just take a stab at it]. ÂÂ
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ESSAY 3
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3. Over the course of this semester we have discussed the role that law plays in our economy and our business climate generally. Explain that role here in the following subparts.ÂÂ
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a. What does the law provide to those engaging in commerce? In other words, what overarching purpose or purposes does it serve?
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b. Why is this purpose (or, these purposes) significant?ÂÂ
